A payment account without a discount window is like a sports car without airbags—fast is fast, but you bear the consequences if something goes wrong.

The Federal Reserve proposes to introduce a more limited type of payment account, allowing fintech and other companies to transfer funds through its payment system, but without the protections of traditional banks, nor access to intraday credit or discount window facilities. The reserves held by these companies at the Federal Reserve would also not earn interest. This move aims to expand access to its payment infrastructure while reducing potential risks to the financial system.